Bitcoin’s relentless surge smashed through the $107,000 mark on Monday, setting a fresh all-time high and leaving investors buzzing about the cryptocurrency’s potential place in U.S. strategic reserves. The rally comes on the back of President-elect Donald Trump’s increasingly pro-crypto stance, a sharp pivot that is reshaping both policy discussions and investor sentiment.
The cryptocurrency giant climbed to a session high of $107,148, before settling around $106,877—a 5.43% gain from Friday. Ether, the second-largest digital currency, also joined the upward momentum, rising 1.85% to $3,975.70.
Bitcoin, often referred to as digital gold, has been on a tear in 2024, climbing nearly 150%. Since Trump’s victory in the November 5 election, it has surged more than 50%, fueled by growing optimism around a friendlier regulatory environment under his leadership.
“We’re in blue sky territory here,” said Tony Sycamore, an analyst at IG quoted by Reuters. “The next figure the market will be looking for is $110,000. The pullback that a lot of people were waiting for just didn’t happen, because now we’ve got this news.”
One of the biggest drivers of this rally is Trump’s recent comments suggesting that he intends to establish a U.S. Bitcoin reserve, akin to the country’s Strategic Petroleum Reserve. Trump, speaking with CNBC late last week, emphasized the need to secure the United States’ leadership in cryptocurrency.
“We’re gonna do something great with crypto because we don’t want China or anybody else—not just China but others—to take the lead. We want to be the head,” Trump said. When pressed about a Bitcoin reserve, Trump confirmed: “Yeah, I think so.”
For context, countries like China, the United Kingdom, Bhutan, and El Salvador already hold significant amounts of Bitcoin. According to CoinGecko, as of July 2024, governments worldwide possessed about 2.2% of Bitcoin’s total supply. The United States leads the pack, holding nearly 200,000 Bitcoins valued at more than $20 billion.
Other global leaders have hinted at similar policies. Russian President Vladimir Putin recently criticized the U.S. dollar’s dominance as the global reserve currency, suggesting that alternative assets—like Bitcoin—could emerge as neutral financial tools.
“For example, Bitcoin. Who can prohibit it? No one,” Putin said earlier this month.
While Trump’s comments have set the crypto market ablaze, some analysts urge caution, pointing to the logistical and financial complexities of building a Bitcoin reserve.
“I think we still need to be cautious on a BTC strategic reserve, and at least consider that this is not likely to happen anytime soon,” said Chris Weston, head of research at Pepperstone, interviewed by Reuters. “Of course, any comment from Trump that offers hope that plans for a strategic reserve are evolving is an obvious tailwind, but this would come with consequences which would need to be carefully considered and well telegraphed to market players.”
MicroStrategy: A surprise addition to Nasdaq 100
Investor confidence also surged with news that MicroStrategy, the software firm turned Bitcoin whale, will join the Nasdaq 100 index on December 23. MicroStrategy, led by CEO Michael Saylor, has become a major corporate investor in Bitcoin, holding approximately 190,000 BTC.
Its shares have skyrocketed more than sixfold this year, pushing the company’s market value to nearly $94 billion. Inclusion in the Nasdaq 100 is expected to drive further inflows into the stock, as index-tracking funds will need to add MicroStrategy shares to mirror the broader index.
Matthew Dibb, Chief Investment Officer at Astronaut Capital, highlighted the potential ripple effect: “The inclusion seems a bit unexpected, but that hasn’t stopped the excitement of what many believe to be the start of a looping cycle of capital that could potentially drive up the spot Bitcoin price.”
MicroStrategy’s stock climbed 4.2% on Monday in response to the announcement.
The excitement around Bitcoin and other cryptocurrencies reflects a broader shift in investor attitudes. The total cryptocurrency market has nearly doubled in 2024, hitting a record $3.8 trillion, according to CoinGecko.
Much of this growth can be attributed to Trump’s embrace of digital assets during his presidential campaign. The president-elect, who once dismissed cryptocurrencies as a “scam,” has since vowed to make the U.S. the “crypto capital of the planet.”
Backing up his promises, Trump recently appointed former PayPal executive David Sacks as a White House “czar” for artificial intelligence and cryptocurrencies—a significant move that positions crypto at the heart of U.S. innovation policy. Additionally, Trump announced plans to nominate pro-crypto attorney Paul Atkins to lead the Securities and Exchange Commission (SEC).
As Bitcoin edges closer to the $110,000 milestone, market watchers remain divided over its trajectory. Proponents believe Trump’s pro-crypto stance could usher in a new era of adoption, while skeptics argue that regulatory and practical hurdles will keep ambitions in check.
Federal Reserve Chair Jerome Powell, for example, compared Bitcoin to gold earlier this month, noting its speculative nature. Critics warn that building a Bitcoin reserve would introduce volatility and risks into a traditionally stable U.S. economic infrastructure.
Still, the momentum is undeniable. For now, Bitcoin’s ascent symbolizes not just a market rally but a growing belief that digital assets will play a central role in the future of finance.
As Tony Sycamore put it, “With Bitcoin, we’re in uncharted waters—and that’s exactly what makes it so exciting.”
